Abbott: PM ran protection racket

The opposition is demanding the federal government refuse to accept Craig Thomson's vote after the former Labor member was arrested over fraud allegations.

Thomson was arrested on Thursday at his electorate office at Tuggerah, on the NSW central coast, and charged with 150 fraud offences.

One offence listed on the charge sheet alleges he used a credit card to avoid paying a debt of $330 to Sydney escort service Aboutoun Catering for sexual services in February 2003.

The embattled MP has previously denied allegations he misused union funds to pay for prostitutes, air travel, entertainment and cash withdrawals when he was national secretary of the Health Services Union (HSU).

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The Prime Minister, Julia Gillard, said that she did not know that Mr Thomson was to be arrested before she decided to call the election for September 14.

Manager of opposition business Christopher Pyne said the government should not accept Mr Thomson's vote when parliament resumes next week.

''If Craig Thomson tries to vote with us, we remove one of our members,'' he told ABC radio on Friday. ''We think (Prime Minister) Julia Gillard should do the same thing.''

Shadow attorney-general George Brandis said Ms Gillard was Thomson's ''biggest defender'', who wanted him to remain the MP for Dobell for many years.

''We now see that the man in whom the prime minister imposed such faith and confidence is the subject of 150 fraud charges,'' he said.